Broadcom is capitalizing on growing demand for application-specific integrated circuits (ASICs) as hyperscalers seek cost-effective, high-performance alternatives to GPUs. The company’s collaboration on tensor processing units for Alphabet has attracted clients such as Meta Platforms and OpenAI, driving analysts at Citigroup to forecast AI revenue of just over $50 billion in fiscal 2026 and $100 billion in fiscal 2027, up from $20.2 billion in fiscal 2025. Notably, the fiscal 2027 projection would exceed Broadcom’s total revenue of $63.9 billion in the prior fiscal year, and these estimates exclude potential contributions from Apple and assume a conservative outlook on Anthropic deployments.

Broadcom exited fiscal 2025 with over $10 billion in AI switch backlog for its Tomahawk 6 products and reported a total AI-related backlog of $73 billion to be delivered over 18 months, nearly half of its consolidated backlog of $162 billion. Of that AI backlog, approximately $20 billion is for nonaccelerator components—lasers, digital signal processors and optical modules—underscoring the strategic importance of networking hardware as customers build out clusters with 800-gigabit and next-generation silicon photonics interconnects.

Institutional investors hold roughly 76.4% of Broadcom’s shares. In the latest filings, Segment Wealth Management LLC trimmed its stake by 2.3%, while HM Payson & Co. reduced its position by 5.0%, reflecting portfolio rebalancing among leading asset managers. On the sell-side, three analysts have issued “Strong Buy” ratings and twenty-nine “Buy” recommendations, with average price targets raised to $436.33 based on upgraded forecasts from Truist, Raymond James and Bank of America, signaling broad confidence in Broadcom’s multi-year AI roadmap.